DAY ONE: Monday, January 30, 2012
7:15 Registration and Continental Breakfast
8:00 Co-Chairs’ Opening Remarks
8:05 The FinCEN Prepaid Access Final Rule: Assessing the Rule’s Provisions and Exclusions, Ensuring Compliance, and Evaluating Its Impact on the Industry
Aaron Karczmer
Chief Compliance Officer, Enterprise Growth
American Express Company (New York, NY)
Suzan Rowland
Lead Counsel, Corporate and Regulatory
Blackhawk Network (Pleasanton, CA)
Cheryl Slipski
EVP, General Counsel
TxVia, Inc. (New York, NY)
Julie G. Wade
Director, Corporate Counsel
Starbucks Corporation (Seattle, WA)
Deborah S. Thoren-Peden
Partner
Pillsbury Winthrop Shaw Pittman LLP (Los Angeles, CA)
Obrea O. Poindexter
Of Counsel
Morrison & Foerster LLP (Washington, DC)
- Key definitions and terms
- What is ‘Prepaid Access’?
- Determining who is covered by the final rule
- Non-bank providers of prepaid access
- Sellers of prepaid access
- Assessing whether a prepaid program is excluded from the rule
- Program features; type of program; potential pitfalls
- Applicability of the final rule to closed loop prepaid programs
- Ensuring that your program satisfies the exemption requirements of the final rule
- Applicability to ‘bank-centric’ prepaid programs
- Bank BSA requirements as compared to the requirements of the final rule
- Evaluating the rule’s requirements for covered providers and sellers of prepaid access
- AML and SAR requirements
- Customer identification requirements
- MSB registration requirement for providers
- Ensuring compliance with the final rule
- Enforcement of the rule
- Consequences for compliance failures
9:30 The Durbin Amendment: The Final Ruling and Its Impact on the Prepaid Card Industry
Michael Day
Senior Corporate Counsel
Blackhawk Network (Pleasanton, CA)
Candace Modlin Davis
Associate General Counsel
Capital One Financial (McLean, VA)
Shawn Miles
SVP, Group Head, Global Public Policy & Regulatory Strategy Counsel
MasterCard Worldwide (Purchase, NY)
Jeremy Kuiper
Managing Director, Payment Solutions Group
The Bancorp Bank (Sioux Falls, SD)
Andrew J. Lorentz
Partner
Davis Wright Tremaine LLP (Washington, DC)
- Analysis of the amendment’s provisions
- How the final rule’s treatment of prepaid differs from industry expectations prior to the rule’s release
- The GPR card exemption
- Limitations on card functionality
- Offering services other than point-of-sale transactions
- Assessing whether a prepaid product is really exempt
- Impact of the final rule on revenue models for GPR cards that are not exempt
- How the industry is responding and adapting to the final rule
- Identifying and capitalizing on potential growth opportunities that Durbin presents for exempt products
- Non-exempt prepaid products
- Ensuring compliance with the fi nal rule’s requirements
10:50 Morning Coffee Break
11:00 The CFPB and Prepaid Cards: Assessing and Preparing For the Bureau’s Supervisory Authority, Including Over Nonbank ‘Larger Participants’, and Its Regulatory Priorities in the Prepaid Context
Jodi Golinsky
Chief Prepaid Counsel
American Express Company (New York, NY)
John C. Ricci
General Counsel
Green Dot Corporation (Monrovia, CA)
Chris Daniel
Co-Chair, Payment Systems Group
Paul Hastings LLP (Atlanta, GA)
Judith E. Rinearson
Partner
Bryan Cave LLP (New York, NY)
Chair, Network Branded Prepaid Card Association
Government Relations Working Group
- Dissecting the bureau’s structure
- Assessing the jurisdictional parameters and authority of the CFPB
- Who is subject to regulation and supervision by the bureau and who is not?
- CFPB’s authority to supervise ‘larger participants’
- Who qualifies as a ‘larger participant’ and in which markets?
- Which prepaid participants are likely to be included?
- Regulatory priorities of the bureau
- Assessing when the CFPB will likely turn its attention to prepaid products
- What can the prepaid industry expect from the CFPB?
- Impact of the CFPB on the federal-state balance
- Evaluating the interplay between the bureau and the states
- State enforcement rights and preemption
- Preemption considerations relating to fees, expiration dates, and licensing
12:10 Networking Luncheon for Speakers and Delegates
1:10 Regulatory and Enforcement Roundtable: Insights From the Agencies that Govern the Prepaid Industry
Christopher L. Hencke
Counsel
FDIC (Washington, DC)
Karen S. Hobbs
Senior Attorney, Bureau of Consumer Protection
Division of Marketing Practices
Federal Trade Commission (Washington, DC)
Gerard (Jerry) W. LiVigni (Invited)
Senior Compliance Officer, U.S. Treasury Department
Office of Foreign Assets Control (OFAC) (Washington, DC)
Moderator:
Mark A. Moore
Principal
Aldrich Bonnefi n & Moore, PLC (Irvine, CA)
In this moderated panel session, you will have the opportunity to participate in a Q&A session with regulatory and enforcement officials from the various agencies that touch on prepaid cards. You will not want to miss this unprecedented opportunity to have your most pressing regulatory, enforcement, and compliance questions answered by our panel of experts.Topics to be addressed include:
- Ensuring that your company has taken the necessary steps to satisfy regulatory scrutiny
- Best practices for working with regulators to determine how best to meet compliance obligations
- What the regulators think of prepaid cards
- Regulatory perspectives on prepaid add-on features and enhancements
- Bill-paying functionality; payment processing; P2P payments
- Do these activities constitute money transmissions?
- What to expect during an examination and how to prepare for it
- Assessing the impact of recent signifi cant OFAC fines
- Ethics, marketing, and enforcement guidelines
- When and how to disclose in compliance with OFAC
- Preparing for an increased regulatory focus on bank oversight of program managers
- Best practices for supervisory oversight of prepaid programs in general
- Recent enforcement actions and trends
- Lessons learned from recent cases
- What the prepaid industry should be on the lookout for
2:40 Ensuring Compliance with the Evolving State Regulatory and Enforcement Framework Governing Prepaid Products
Stephanie Newberg
Deputy Commissioner
Texas Department of Banking (Austin, TX)
Lisa M. Liban
Vice President & Assistant General Counsel, Regulatory Compliance
Fiserv (Norcross, GA)
David L. Beam
Partner
K&L Gates LLP (Washington, DC)
Donald J. Mosher
Partner
Schulte Roth & Zabel LLP (New York, NY)
- Complying with state consumer protection laws
- Preparing for and responding to increased state enforcement efforts
- Lessons learned from recent enforcement actions
- Update on key state legislative actions affecting prepaid products
- Understanding the role of prepaid cards under state money transmitter licensing laws
- Recent developments in state money transmitter statutes designed to stay current with the evolving nature of electronic payments
- Money transmitter issues:
- Remitting and flow of funds
- Which party is responsible for remitting?
- Whose license is being utilized and what are the implications?
- Aggregators
- Permissible investments
- Satisfying the requirement to supervise agents
- Ensuring compliance when multiple parties are involved
- Terms and conditions
- Which prepaid add-on features and enhancements constitute money transmissions and which do not, and what are the regulatory implications?
- Bill-paying functionality; payment processing; P2P payments
- Abandoned property-
- New Jersey’s escheat law
- Regulatory trends affecting escheat periods
- Under what conditions does remaining value escheat to a specific state?
- Identifying and assessing the escheat safe harbors afforded by some states, such as South Dakota and Utah, for gift cards
- Compliance concerns when products are used to transmit money across borders
4:00 Conference Adjourns – Registration for Master Class A
DAY TWO: Tuesday, January 31, 2012
7:30 Continental Breakfast
8:00 Co-Chairs’ Remarks
8:05 A Focus on Prepaid Card Program Partners: Enhancing Compliance Eff orts and Facilitating Communication Along the Prepaid Value Chain
John Hagy
Chief Legal Officer
MetaBank (Sioux Falls, SD)
Mark Lewington
General Counsel
Moneytree Inc (Seattle, WA)
Brian Maher
Director, Risk & Regulatory Compliance
PreCash, Inc. (Portland, OR)
Chris Trujillo
General Counsel
Galileo Processing (Salt Lake City, UT)
Carol R. Van Cleef
Partner
Patton Boggs LLP (Washington, DC)
- Impact of the FinCEN Prepaid Access final rule on program partner relationships
- Ensuring that prepaid access providers receive the necessary information from other program partners
- Contracting considerations
- Determining which parties are responsible for which aspects of AML compliance
- Implementing and integrating compliance initiatives across the prepaid chain
- Working with retailers to acquire information necessary for AML compliance
- Ensuring that your program partners are in compliance
- Implementing compliance training and supervision programs for retailers
- Strategic guidance for managing third-party risks
- Conducting ongoing third-party monitoring and due diligence
- Retailer perspective on working with issuers, processors, and program managers
- Best practices for negotiating and drafting contracts
- What ought to be included and why
- Pitfalls to avoid
- Documenting your strategic alliances and distribution arrangements
9:30 Morning Coffee Break
9:40 Developing, Implementing, and Maintaining AML and FCPA Compliance Programs and Fraud Deterrence Strategies for Prepaid Products
Marilyn D. Barker
Assistant General Counsel
Legal and Compliance Risk Management Division
The Bancorp Bank (Crofton, MD)
Alex Miller
Associate General Counsel
Visa Inc. (Foster City, CA)
Nicole Ibbotson
Associate General Counsel
Financial ServicesInComm (Atlanta, GA)
Jeff Ross
Senior Vice President, BSA/AML/OFAC Officer
Green Dot Corporation (Monrovia, CA)
Valerie Y. Towery, CAMS
Director – AML Compliance
The Western Union Company (Englewood, CO)
Susan Lea Smith
Senior Trial Attorney
Asset Forfeiture & Money Laundering Section
U.S. Department of Justice (Washington, DC)
- Establishing a compliant AML program in the wake of the FinCEN Prepaid Access final rule
- Providers of prepaid access
- Sellers of prepaid access
- Best practices for identifying suspicious activity and fi ling SARs
- Evaluating an existing AML program and identifying gaps or weaknesses
- Developing and implementing effective AML procedures
- Issuing banks; program managers
- Drafting contracts and agreements to support and enhance AML compliance
- Assessing the FFIEC’s recently released supplemental authentication guidance
- Best practices regarding transaction monitoring, customer authentication, and layered security
- Using social media for authentication?
- Asset forfeiture/seizure and implications for members of a card program
- The interplay between prepaid cards and the FCPA
- Establishing an FCPA compliance program
- Ensuring proper screening
- Facilitating and promoting coordination amongst those responsible for AML, OFAC, and FCPA compliance
- Understanding the fraud risks of prepaid cards
- Tax refund fraud
- Minimizing such risks
- How prepaid cards are being misused
- Emerging trends and patterns
- Lessons learned from recent enforcement actions involving prepaid cards
- Leveraging your AML program to detect fraud
- Evaluating your current fraud deterrence program and identifying gaps or weaknesses
- Assessing the effectiveness of product safeguards and techniques used to reduce occurrences of fraud and improve risk management
- Implementing enhanced data protection initiatives
- Striking the right balance between fraud prevention and customer concerns
- Legal implications
- Maintaining customer satisfaction and funds availability while also protecting against fraud
11:05 Privacy, UDAP, Third-Party Relationships, and Marketing: Regulatory and Compliance Considerations for Prepaid Cards
Sherry L. Antonellis
Senior Review Examiner
FDIC (New York, NY)
Lucas G. Paglia
Vice President - Deputy General Counsel
American Eagle Outfitters, Inc. (Pittsburgh, PA)
Karen L. Garrett
Partner
Stinson Morrison Hecker LLP (Kansas City, MO)
Terrence P. Maher
Partner
Baird Holm LLP (Omaha, NE)
Counsel to Network Branded Prepaid Card Association
Mark A. Moore
Principal
Aldrich Bonnefin & Moore, PLC (Irvine, CA)
- Assessing recent OTS directives and their impact on prepaid products
- Engaging in third-party relationships
- Monitoring; due diligence; contractual issues
- Marketing considerations
- Using third-party marketers without running afoul of UDAP laws
- Social media/social networking
- Privacy issues in the prepaid context
- UDAP pitfalls associated with credit products linked to prepaid cards
- Addressing increased risk management challenges
- Ensuring that consumer disclosures are in compliance with UDAP
- Determining what you need to include in disclosures and how the relevant information should be presented
- Extent of required disclosure for prepaid products
12:20 Conference Ends – Lunch for Master Class B & C Participants
Conference Details